Japanese Game Giants' Stocks Plummet Due to Trump's Tariffs

The stock market for video game companies in Japan took a sharp dive following the announcement of U.S. President Donald Trump's tariffs. These tariffs, set to affect around 60 countries deemed the "worst offenders," are slated to begin on April 9, with Japan facing a 24% tariff rate. The rationale behind these measures, according to White House officials, is to counteract what they perceive as unfair trade practices, including high tariffs on U.S. goods, non-tariff barriers, and actions detrimental to American economic interests.

Tariffs, which are essentially import taxes, often lead to increased costs that are passed on to consumers. This could significantly impact the pricing of tech and gaming products, much to the dismay of gamers worldwide.

The repercussions were felt immediately in Asian stock markets. Japan's Nikkei 225 fell by 7.8%, Australia's ASX 200 dropped 4.2%, South Korea's Kospi declined 5.6%, the Shanghai Composite in China closed 7.3% lower, and Taiwan's Weighted Index plummeted by 9.7%. Meanwhile, Hong Kong's Hang Seng was down 12.5% in afternoon trading.

Dr. Serkan Toto, CEO of Kantan Games, reported significant declines in Japanese video game stocks on the morning of April 7. Notable drops included Nintendo at 7.35%, Sony at 10.16%, Capcom at 7.13%, and Sega at 6.57%. Other companies like Bandai Namco, Konami, Koei Tecmo, and Square Enix also saw their stock values decrease.

It's Monday 10am in Japan where Japanese game stocks currently react to these insultingly dumb tariffs like so:

Nintendo -7.35%
Sony -10.16%
Bandai Namco -7.03%
Konami -3.93%
Sega -6.57%
Koei Tecmo -5.83%
Capcom -7.13%
Square Enix -5.23%

The mobile game companies do even worse.

— Dr. Serkan Toto (@serkantoto) April 7, 2025

Nintendo recently announced a delay in U.S. pre-orders for the Nintendo Switch 2 due to these tariffs and global uncertainty. Originally set for April 9, U.S. pre-orders have been postponed, although the console's June 5 release date remains unchanged. Pre-orders in other regions will proceed as planned on April 9. The Nintendo Switch 2 is priced at $449.99, with a Mario Kart World bundle at $499.99 and the game itself at $79.99.

The Switch 2 package includes the console, Joy-Con 2 controllers (L+R), Joy-Con 2 Grip, Joy-Con 2 Straps, Nintendo Switch 2 Dock, Ultra High-Speed HDMI Cable, Nintendo Switch 2 AC Adapter, and a USB-C Charging Cable.

Niko Partners analyst Daniel Ahmad highlighted that Nintendo's shift of some Switch 2 manufacturing to Vietnam, in response to U.S. tariffs on China, might not fully mitigate the impact of these new tariffs. "The company has shifted some of its manufacturing to Vietnam to offset U.S. tariffs on China, but the looming threat of reciprocal tariffs prior to the Switch 2 showcase forced Nintendo to consider a higher price for the rest of the world," Ahmad explained. "The reciprocal tariffs on Vietnam and Japan have come in higher than expected, and Nintendo will feel the impact of this if the tariffs go into full effect."

There are growing concerns among Nintendo fans and analysts that the company may further increase the price of the Switch 2 and its games, especially in light of the backlash to its initial pricing strategy.

Sony, which produces the PlayStation consoles including the $700 PlayStation 5 Pro, is also under scrutiny. IGN has reached out to the company for comments on potential price increases in the U.S.

Economic forecasts are grim, with Goldman Sachs raising its estimate of a U.S. recession within the next year to 45%, up from 35%. Similarly, JPMorgan now predicts a 60% chance of a U.S. and global economic downturn.

In response to criticism, President Trump defended the tariffs, stating, "sometimes you have to take medicine to fix something," according to a BBC report.

For further details, you can explore everything announced at the Switch 2 Nintendo Direct and expert opinions on the Switch 2 price and Mario Kart World's $80 price tag.